This chart shows why department stores like Macy's, Sears, and JCPenney are dying

Shoppers
leave the American Eagle Outfitters store in Broomfield, Colorado
August 20, 2014. American Eagle Outfitters was a bright spot in
the retail sector Wednesday after the teen-oriented chain's
second-quarter results beat expectations and forecasts for
third-quarter earnings were in line with the current estimate.
Its stock jumped 12 percent to $12.98.REUTERS/Rick Wilking

Traditional mall retailers are struggling.

Morgan Stanley recently executed a study regarding the state
of specialty retail over the past ten years.

Below is a chart that illustrates the number of years that
retailers reported positive comparable sales over the
past decade.

Abercrombie & Fitch is the lowest, and Ross Stores rank the
highest.

Morgan Stanley

There's a clear trend from the past decade: off-price stores
(like Ross, TJ Maxx, and Nordstrom Rack) are thriving. In an era
defined by affordable fast fashion and incessant discounting,
this makes sense.

After all, many full-line stores are forced to resort to
promotions and discounting when they can't clear their
inventory.

As stores likeBanana Republiccontinue to resort
to constant promotions, consumers become conditioned to pay
less, making it harder for retailers to convince them to spend
more.

A recent shift in spending is making it even harder for
traditional retailers to stay afloat. Consumers are
spending less on clothing, instead choosing
to spend their money on technology, like iPhones and smart
watches. This means that in order to get consumers to pay
full-price, retailers have to lure consumers with a full-on
lifestyle.

Department stores fall in the middle, though it's worth noting
that Kohl's, JC Penney, and Macy's all fall below-average,
highlighting the dire state of the industry.

Meanwhile, mall stores have an uphill climb. As more malls shutter, these retailers need to adapt
to e-commerce, but the recent rise of Amazon Fashion proves that if
they don't move swiftly, they could be doomed.